The bearish pressure returned onto U.S. stocks, pushing all three benchmark indices lower on Friday. At the time of writing, the tech-heavy Nasdaq 100 index was down 1%, trading at around 15,350 USD.

“Market sentiment has been shaken by concerns over the prospect of imminent Fed tightening along with record global Covid-19 infection rates, but we don’t expect either of these factors to end the equity rally,” said UBS Wealth Management CIO Mark Haefele in a note. “The fourth-quarter U.S. earnings season, which started this week, could turn investor attention back to strong fundamentals.”

Traders also paid attention to today’s U.S. retail sales data, which came out horribly. December is usually a strong season due to the Christmas holidays, but last month’s retail sales plunged to -1.9% month-on-month, down from 0.2% previously. Moreover, the control group sales dropped even more to -3.1% from -0.5% in November.

It looks like the index is on its way to the 200-day moving average (the green line) for the first time since April 2020. That zone near 15,000 USD is the key support to watch. If broken to the downside, the long-term uptrend could be in jeopardy, with a possible decline to 14,400 USD.

Alternatively, if bulls buy the dip, the index must climb above 15,500 USD to cancel the short-term bearish momentum. 

14:43, 14 Jan 2022



About Author

Peter comes from a background in corporate finance which began in 2013 when he completed the Corporate Finance Program at the University of Economics in Bratislava. He’s been actively involved in the market sector since 2008 and got his hands-on experience in trading in 2011. His experience in finance and trading continues not only as a market analyst at Axiory Intelligence but also through his studies to obtain a degree in Capital Markets. The study is in line with MIFID II regulations and is under the supervision of the European Regulator ESMA, which strongly emphasizes ethics and morale in investing and working with a client.

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